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Value chain analysis of sheep in Horro district of Oromia Region, Ethiopia
1. Value chain analysis of sheep in Horro
district of Oromia Region, Ethiopia
G. Duguma, K. Degefa, T. Jembere, W. Temesgen, A. Haile and G. Legese
Multi-stakeholder Workshop for Targeting Action Research on Small
Ruminant Value Chains in Ethiopia
Addis Ababa, 14th-15th March 2013
2. Objectives
To identify major constraints and
opportunities that influence development
of sheep value chain
To suggest key intervention areas for
intervention
To document important elements and
modalities of market strategies to
develop sheep value chain
3. Major findings – map of core functions
Input supply Production Marketing Processing Consumptions
Supply of: Feeding Collection Slaughtering Consumption
Breeding Herding Transporting Frying / cooking
stock Housing Feeding Meat retailing
Veterinary Breeding Selling Chilling
services Treating
Packing
Farmers, Hotels, butch
DLHA, B Collectors,
Smallholder eries, Consumers
ARC, ICR Traders
Framers E. abattoirs Foreign
DA, ILRI E. abattoirs Domestic
Traders
4. Major findings – market routes
Fincha’a sugar
Bahirdar factory Export
abattoirs
20 % Fincha’a
town
Dongoro Saqala 10 %
High way to Bahirdar
30 %
20 % 10 % Addis
H. Shoxi 10 %
Ababa
10 % Shambu
Anger Gaba 25 %
Gute 15 %
Sanbata
Baqale 15 %
10 % 10 %
Harato Jare
50 % Sheboka
80 %
Sire Bako
Nekmete
5. Major findings – market channels and volume of
animals flowing through the different channels
6. Major findings – major channels
• Six major sheep marketing channels identified:
– Channel 1: Sheep slaughtered at hotels
– Channel 2: Sheep slaughtered at butcheries
– Channel 3: Sheep purchased by individual consumers
– Channel 4: Sheep purchased to Addis Ababa markets
– Channel 5: Sheep purchased by other farmers for
breeding purposes
– Channel 6: Sheep slaughtered at export abattoirs
7. Major findings – market margins
Marketing Marketing Net margin Producer’s Proportion
cost margin share of of value
final price % added (%)
Channel 1 292.2 531.75 239.55 55.0 27.8
Channel 2 190.95 223.0 32.05 70.0 4.9
Channel 4 16.45 250.0 233.55 60.0 21.2
Channel 6 87.5 256.9 169.4 57.0 25.2
Different animals are required by the different market actors:
• Channel 1 & 2 mature barren ewes and some times
castrates
• Channel 4 mostly castrates
• Channel 6 young with good body condition
8. Major findings – constraints
Input supply
Shortage of veterinary drugs
Shortage of skilled technicians (6)
Lack of transportation facilities
Production constraints
Feed shortage (seasonality of feeds) (1)
Poor/traditional housing
High incidence of liver fluke and lice infestation (2)
Knowledge /skill on market oriented sheep production and management (4)
Market constraints
Transportation problems – road problem
Limited access to market information and low bargaining power (3)
Animal theft and gaps in the law to penalize the criminals
Shortage of consistent supply of quality sheep and multiple taxation (5)
Lack of vertical linkage (8)
Weak horizontal linkages (7)
Seasonality of demand for sheep
9. Major findings – opportunities
– Population size and the ecological niche /geographical
locations the breed inhabited
– Market access and conduciveness of the areas for
sheep, other livestock species and various crops
– Production & reproduction performances of the breed under
good managemnt– respond well to supplementary feeds
(150-200g/h/d)
– An increasing demand for live sheep and sheep meat
– CBSBP and the possibility of scaling up CBSBP to wider
areas
– Gov’ts commitment and support to increase export of meat
– The involvement of international institutions
(ICARDA, ILRI, BOKU, etc)
– The presence of higher learning institutions in the areas
– Skilled and enthusiastic research staff
10. Conclusion
• Both domestic and export markets prefer young and fattened animals
• However, due to the following factors producers are not benefited
from the huge sheep population
– The existing production system is not market oriented – poor
quality animals, supply is inconsistent
– Shortage of feeds particularly during dry seasons
– Animal health problems (liver fluke, lice infestation, etc.)
– Lack of flexible credit system
– Seasonality of demand for sheep
Source: Duguma et al. (2012, unpublished)
11. Recommendation
• Strengthening and scaling up of the CBSBP – to ensure
continuous supply of quality animals
• Use of fattening technologies
• Provision of training to producers and extension
workers on market oriented sheep production and
management
Strengthening of breeding and marketing coops
Training community-health workers
• Strengthening horizontal linkage among farmers to
improve their exchange of breeding stock and their
market supply
• Conservation and wise utilization of crop residues
• Assigning skilled manpower
Provision of transportation facilities
12. Future plan
• Interventions based on recommendations
resulting from the study
– e.g. well conditioned/fattened animals are
needed both for domestic and export
– Seasonality of feed and market
• Strengthening, scale up & scale out the
CBSBP
• Strengthening of the breeding and marketing
coops
13. Acknowledgment
• USAID for the financial support through the
Africa RISING Program
• BARC – for financing the project in terms of
staff time
• ILRI (Dr. Alan Duncan) for the support and
collaboration
• To the smallholder farmers, hotel
owners, butcheries, traders, export abattoirs
and others for their cooperation in providing
necessary information